By Jason Olson
At our 25th Annual Customer Conference in April, we hosted Bob Meara, senior analyst at Celent’s Banking Group. An expert in the remote deposit capture (RDC) space, we’ve worked with Bob for many years and were humbled to recently receive the XCelent Service Award in the 2013 ABCD Vendor View report (thanks, Bob!). Having followed the technology since its inception and launching a series of Check 21 Act payments solutions prior to joining Celent, Bob is truly seen as an industry leader in both the RDC space and the broader banking technology industry.
In his session titled “Distributed Capture Update: A Medley of Insights,” Bob addressed the state of the RDC and teller capture industry, as well as what’s to come for the solution, which celebrates its tenth anniversary this year. We’re sharing below our favorite takeaways from Bob’s session:
Teller Capture Adoption is on the rise, again. While branch capture adoption virtually came to a halt in 2010, the past two years have seen a significant increase in teller capture usage, particularly in banks with asset size upwards of $50 billion. As brick and mortar branches are on the decline, branch transformation initiatives will drive teller capture adoption moving forward.
Mobile RDC (mRDC) is heating up for small and medium businesses (SMBs). While only 11 percent of respondents to Celent’s financial institution survey offer a mobile RDC option for commercial clients, Celent projects this is the next wave of adoption, focusing on small banks who might re-think commercial mRDC for SMB customers.
Deposit risk will increase as RDC continues to gain traction. And not just for mRDC. Bob noted vigilance against fraud is necessary across the enterprise. Notably, risk and compliance challenges have become less overwhelming for banks. Since 2012, banks have shifted their SMB customer priorities away from improving risk management and regulatory compliance, making way for what really matters – increasing client adoption for fee revenue and deposit growth. Bob recently published a risk-related blog post for Celent based on a session he attended at WAUSAU’s Customer Conference.
Pricing is polarizing for mRDC and risk capabilities. A major barrier for mRDC and risk monitoring adoption is cost. More than half of survey respondents (51 percent) would expect a free mRDC solution in conjunction with their existing RDC solution to maximize client adoption. Steep costs also prevent banks from adding risk management solutions. While many banks have expressed interested in interbank RDC risk management, Celent suspects banks’ assumptions around pricing limit appeal.
We’re happy to see Bob’s projections for RDC align closely with WAUSAU’s views of the space. Earlier this year, I contributed an article with my predictions for RDC in RemoteDepositCapture.com’s special report that marked the 10 year anniversary of the Check 21 Act. In it, I highlighted the future of mRDC adoption, the opportunity for small businesses and identified price as a barrier to adoption.